HB1605 (2018) Detail

Relative to reinsurance.


CHAPTER 193

HB 1605 - FINAL VERSION

 

10May2018... 1955-EBA

2018 SESSION

18-2432

01/04

 

HOUSE BILL 1605

 

AN ACT relative to reinsurance.

 

SPONSORS: Rep. Hunt, Ches. 11; Rep. Butler, Carr. 7; Sen. Soucy, Dist 18

 

COMMITTEE: Commerce and Consumer Affairs

 

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ANALYSIS

 

This bill establishes rulemaking for the purposes of reinsurance.

 

This bill is a request of the insurance department.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

10May2018... 1955-EBA 18-2432

01/04

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Eighteen

 

AN ACT relative to reinsurance.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

193:1  Reinsurance; Credit Allowed a Domestic Ceding Insurer.  Amend the introductory paragraph of RSA 405:47 to read as follows:

Credit for reinsurance shall be allowed a domestic ceding insurer as either an asset or a reduction from liability on account of reinsurance ceded only when the reinsurer meets the requirements of paragraphs I, II, III, IV, or V; provided that the commissioner may adopt by rule, pursuant to RSA 541-A, specific additional requirements relating to or setting forth the valuation of assets or reserve credits, the amount and forms of security supporting reinsurance arrangements described in RSA 405:51, and the circumstances pursuant to which credit shall be reduced or eliminated.  Credit shall be allowed under paragraphs I, II, or III only as respects cessions of those kinds or classes of business which the assuming insurer is licensed or otherwise permitted to write or assume in its state of domicile or, in the case of a U.S. branch of an alien assuming insurer, in the state through which it is entered and licensed to transact insurance or reinsurance.  Credit shall be allowed under paragraphs III or IV only if the applicable requirements of paragraph VI have been satisfied.

193:2  Asset or Reduction From Liability for Reinsurance Ceded by a Domestic Insurer to an Assuming Insurer Not Meeting the Requirements of RSA 405:47.  Amend the introductory paragraph of RSA 405:50 to read as follows:

An asset or a reduction from liability for the reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of RSA 405:47 shall be allowed in an amount not exceeding the liabilities carried by the ceding insurer; provided that the commissioner may adopt by rule, pursuant to RSA 541-A, specific additional requirements relating to or setting forth the valuation of assets or reserve credits, the amount and forms of security supporting reinsurance arrangements described in RSA 405:51, and the circumstances pursuant to which credit shall be reduced or eliminated.  The reduction shall be in the amount of funds held by or on behalf of the ceding insurer, including funds held in trust for the ceding insurer, under a reinsurance contract with the assuming insurer as security for the payment of obligations under such contract, if the security is held in the United States subject to withdrawal solely by, and under the exclusive control of, the ceding insurer; or, in the case of a trust, held in a qualified United States financial institution, as defined in RSA 405:46, III.  This security may be in the form of:

193:3  New Section; Rulemaking For Reinsurance.  Amend RSA 405 by inserting after section 50 the following new section:

405:50-a  Rulemaking for Reinsurance.  The commissioner may adopt rules under RSA 541-A relative to reinsurance arrangements as follows:

I.  Such rules shall apply only to reinsurance relating to:

(a)  Life insurance policies with guaranteed nonlevel gross premiums or guaranteed nonlevel benefits.

(b)  Universal life insurance policies with provisions resulting in the ability of a policyholder to keep a policy in force over a secondary guarantee period.

(c)  Variable annuities with guaranteed death or living benefits.

(d)  Long-term care insurance policies.

(e)  Such other life and health insurance and annuity products as to which the NAIC  adopts model regulatory requirements with respect to credit for reinsurance.

II.  A rule adopted pursuant to subparagraph I(a) or I(b) may apply to any treaty containing policies issued on or after January 1, 2015, and policies issued prior to January 1, 2015, if risk pertaining to such pre-2015 policies is ceded in connection with the treaty, in whole or in part, on or after January 1, 2015.

III.  A rule adopted under this section may require the ceding insurer, in calculating the amounts or forms of security required to be held, to use the Valuation Manual adopted by the NAIC under Section 11B(1) of the NAIC Standard Valuation Law, including all amendments adopted by the NAIC and in effect on the date as of which the calculation is made, to the extent applicable.

IV.  A rule adopted pursuant to this section shall not apply to cessions to an assuming insurer that:

(a)  Is certified in this state; or

(b)  Maintains at least $250,000,000 in capital and surplus when determined in accordance with the NAIC Accounting Practices and Procedures Manual, including all amendments thereto adopted by the NAIC, excluding the impact of any permitted or prescribed practices, and is:

(1)  Licensed in at least 26 states; or

(2)  Licensed in at least 10 states and licensed or accredited in a total of at least 35 states.

193:4  Effective Date.  This act shall take effect 60 days after its passage.

 

Approved: June 08, 2018

Effective Date: August 07, 2018

Links


Date Body Type
Jan. 18, 2018 House Hearing
Feb. 20, 2018 House Exec Session
House Floor Vote
March 6, 2018 House Floor Vote
April 17, 2018 Senate Hearing
May 2, 2018 Senate Floor Vote

Bill Text Revisions

HB1605 Revision: 4115 Date: June 12, 2018, 10:40 a.m.
HB1605 Revision: 3684 Date: May 15, 2018, 4:01 p.m.
HB1605 Revision: 2345 Date: Nov. 13, 2017, 11:35 a.m.

Docket


June 8, 2018: Signed by Governor Sununu 06/08/2018; Chapter 193; Eff. 8/7/2018


May 10, 2018: Enrolled 05/10/2018


May 10, 2018: Enrolled (In recess 05/10/2018); SJ 18


May 10, 2018: Enrolled Bill Amendment # 2018-1955e: AA VV 05/10/2018


May 10, 2018: Enrolled Bill Amendment # 2018-1955e Adopted, VV, (In recess of 05/10/2018); SJ 18


May 2, 2018: Ought to Pass: MA, VV; OT3rdg; 05/02/2018; SJ 15


May 2, 2018: Committee Report: Ought to Pass, 05/02/2018; SC 19


April 17, 2018: Hearing: 04/17/2018, Room 100, SH, 01:00 pm; SC 16


March 8, 2018: Introduced 03/08/2018 and Referred to Commerce; SJ 7


March 6, 2018: Ought to Pass: MA VV 03/06/2018 HJ 6 P. 12


: Committee Report: Ought to Pass (Vote 20-0; CC)


March 6, 2018: Committee Report: Ought to Pass for 03/06/2018 (Vote 20-0; CC) HC 9 P. 8


Feb. 20, 2018: Executive Session: 02/20/2018 LOB 302


Feb. 21, 2018: Subcommittee Work Session: 02/21/2018 09:30 AM LOB 302


Feb. 20, 2018: Subcommittee Work Session: 02/20/2018 09:30 AM LOB 302


Jan. 18, 2018: Public Hearing: 01/18/2018 01:30 PM LOB 302


Jan. 3, 2018: Introduced 01/03/2018 and referred to Commerce and Consumer Affairs HJ 1 P. 17